Vahdettin ERTAŞ, Ph.D.

High-level conference on global and European

trends in financial education

22-23 May 2014 - Istanbul, Turkey

New Challanges, Innovation and Measures of Success

TURKEY-Snapshot Population 76.6 million (2013)

Labor Force (Population) 28.8 million (2013)

Median Age 30.4 (2013)

Area 783,562.38 km²

Financial Center Istanbul

GDP USD 820 billion (2013)

GDP Per Capita USD 10,782 (2013)

Exports Value USD 152 billion (2013)

Imports Value USD 251 billion (2013)

Tourism Revenue USD 32.3 billion (2013)

Tourist Number 39.2 million (2013)

Foreign Direct Investment USD 12.9 billion (2013)

Number of Companies with Foreign Capital 36,450 (2013)

Inflation Rate 7.5% (CPI-2013)

Major Exports Markets Germany (9%); Iraq (7.8%); UK (5.8%); Russia (4.6%); Italy (4.4%); France

(4.2%); USA (3.7%); UAE (3.3%); Spain (2.8%); Iran (2.4%) (2013)

Major Imports Sources

Russia (9.9%); China (9.8%); Germany (9.6%); Italy (5.1%); USA (5%); Iran

(4.1%); Switzerland (3.8%); France (3.2%); Spain (2.5%); India (2.5%)

(2013)

Population 76.6 million (2013)

Labor Force (Population) 27.8 million (February 2014)

Median Age 30.1 (2013)

Area 783,562.38 km²

Financial Center Istanbul

GDP USD 820 billion (2013-Current Prices)

GDP Per Capita USD 10,782 (2013)

Exports Value USD 152 billion (2013)

Imports Value USD 251 billion (2013)

Tourism Revenue USD 32.3 billion (2013)

Number of Tourists 39.2 million (2013)

Foreign Direct Investment USD 12.9 billion (2013)

Number of Companies with Foreign Capital 36,450 (2013)

Inflation Rate 9.4% (CPI-April 2014)

Major Exports Markets Germany (9%); Iraq (7.8%); UK (5.8%); Russia (4.6%); Italy (4.4%); France

(4.2%); USA (3.7%); UAE (3.3%); Spain (2.8%); Iran (2.4%) (2013)

Major Imports Sources

Russia (9.9%); China (9.8%); Germany (9.6%); Italy (5.1%); USA (5%); Iran

(4.1%); Switzerland (3.8%); France (3.2%); Spain (2.5%); India (2.5%)

(2013)

10,5 million tourists

(30% of total arrivals in Turkey, 2013)

4

İstanbul 3. Airport

Auction value ≈ 22 billion Euros

Construction cost ≈ 10 billion Euros

İstanbul – İzmir Highway ≈ 16 billion $

İstanbul 3. Bridge ≈ 3,5 billion $ High Speed Train

İstanbul - Ankara ≈ 4 billion $

Haydarpaşa Port

≈ 5 billion $

Kanal İstanbul…

The Improvements in Turkish Economy

Outlook USD 123 billion of FDI in the past decade and 13th most attractive FDI destination in the world (2012 A.T. Kearney FDI Confidence Index)

16th largest economy in the world and 6th largest economy compared with EU countries in 2012 (GDP at PPP, IMF-WEO)

Robust economic growth over the last decade with an average annual real GDP growth of 5 percent

GDP reached USD 820 billion in 2013, up from USD 231 billion in 2002

Sound economic policies with a prudent fiscal discipline

Strong financial structure resilient to the global financial crisis

Borsa Istanbul

• Market Capitalization $255 billion

Banking

• Asset Value $855 billion

Mutual Funds

• Portfolio Value $14 billion

Pension Funds

• Portfolio Value $13 billion

Real Estate Investment Trusts

• Portfolio Value $9 billion

Portfolio Management Companies

• Portfolio Value $32 billion

Financial Indicators

Financial Indicators

Number of comp. regist. with the Board 605

Borsa Istanbul companies 421

Number of issue investors in Borsa Istanbul 1,095,386

Number of investors in mutual funds 2,758,658

Number of pension funds participants 4,520,515

Education

Reforms & Developments

Education in Turkey

Compulsory eight-year education

Improvement of the overall quality of the Turkish education system

Increase in the number of schools and related establishments

The Fatih Project; public school students with tablet PCs and classrooms with electronic boards

Financial Education in Turkey

Financial Capability Survey

A nationwide study conducted by WB to inquire into financial capabilities, skills, behaviors, tendencies, and decision-making patterns of citizens across Turkey

3009 households surveyed through face-to-face interviews

Subjects with higher socio-economic condition tend to give more right answers to financial literacy questions

Most respondents gave wrong answer or did not respond to the questions on compound interest and inflation

Level of indebtedness

Financial Capability Survey

Can you save for the future?

FINANCIAL LITERACY

Central Bank of Turkey

Treasury

Sav. Dep. Ins. Fund

Banking Capital Markets

Tax Insurance Real

Sector

Capital Markets Board

Min. of Education

Min. of Development

Bank.Reg. & Sup.

Aut.

National Strategy – Organization

National Strategy on Financial Education Overview

Goals to help citizens to improve their understanding of financial concepts and products and manage their money

to provide information and tools to help citizens make informed decisions about their finances

to improve saving and investment culture of general public

General Public with an emphasis on:

• University students

• School-aged children

• Women & Families

• Employees (public and private sector)

• Finance sector employees

• Others (Handicapped people, newly wed couples, unemployed young people etc.)

National Strategy – Target Groups

PROJECT NAME TARGET GROUP OUTCOME COORDINATOR

Essay Contest

Students in primary

and secondary

education

Raised awareness of

students about capital

markets

CMB

Simulation Games

Primary and

secondary

education students

Raised awareness of

students about capital

markets

CMB

Training the Trainers

Teachers in primary

and secondary

schools

Increased level of

financial literacy and

skills

CMB

Enhancing finance

topics in the

curriculum

Primary and

secondary

education students

Increased level of

financial literacy and

skills

CMB, Ministry of

Education

Primary & Secondary Education

2013 SUMMIT